Eileen Foster, formerly of Countrywide Financial (senior executive) gives a rare peep into the murky underworld of the foreclosing bank.  She was in charge of investigating fraud. The bank ignored repeated warnings and this led to the house of cards tumbling bringing about the unparalleled crisis in America. But despite clear evidence of fraud and criminal activities not a single Wall Street executive has been put behind bars.

Foster is willing to name the culprits but only if the court asks her. The Justice Department has remained silent.

Foster investigated the activities of the Boston branches of Countrywide, combing through recycle containers.  Following this the financial entity shut down eight of the branches in Boston. Out of sixty employees, forty four were either shown the door or they resigned.

Foster informed that these signature forging incidents were not confined to the Boston offices only. It was happening in other places like Chicago,Miami, Las Vegas, and Phoenix; in fact in all the mega markets across Florida.

Following the Boston exposure the sub-prime section of Countrywide began systematically covering up their tracks – transgression of policy and the internal controls of its finances. A person at the top told the employees to skirt her office and report all dubitable activities to another department (personnel). The latter section was notorious for cracking down on whistle blowers and protecting the big loan officers of Countrywide.

Foster came to know that there were innumerable instances of fraud – something she had all along suspected. These never came to be reported to her section, to the board or to the government while she was in harness. She is absolutely sure that this was intentional and planned.

With the nod from her boss she took the matter up the chain to the audit section but there was no action. In the latter part of 2008 when Countrywide was stumbling under the weight of its toxic loans it was taken over by Bank of America.

Soon after getting promoted Foster wanted to speak with the federal regulators about the fraud reports of Countrywide but before the meeting was held she was given the boot. If the meeting had taken place she would have told them exactly what she was telling the media today.

Just before the scheduled meeting she had been contacted by a big brass who suggested to her how she should handle the queries tantamounting to downplaying the severity of the crime. She refused to spin it; the very next day she was shown the door.

Karen Anne, has been working on ForeclosureListings.com studying the foreclosures market, helping buyers on the finer points of foreclosures. Try to visit ForeclosureListings.com and search foreclosure listings.